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JPMorgan Sees 2Q U.S. GDP Contracting 25%, With Pain in Store

  • Forecast built on assumption virus has run its course by June
  • Even ‘Herculean stimulus effort’ won’t overcome Covid-19 shock
Empty streets are seen in front of JPMorgan Chase & Co. bank branch in New York, on March 19. 

Empty streets are seen in front of JPMorgan Chase & Co. bank branch in New York, on March 19. 

Photographer: Michael Nagle/Bloomberg

JPMorgan slashed its growth outlook for the U.S. economy for the first and second quarters after assessing measures to contain the coronavirus and bolster the economy during the past week.

“When we revised down our growth outlook last week it was generally received as overly pessimistic,” Chief U.S. Economist Michael Feroli and analyst Jesse Edgerton wrote in a note. “Now it looks somewhat optimistic; such is the pace of events.”